Comparative Analysis of Economic and Profitability of Artisanal Gold Mining in Part of Niger and Osun States, Nigeria

Abstract

Comparative analysis of economic and profitability of artisanal gold mining in part of Niger and Osun states was carried out to assess the cost of production, assess the production rate of alluvial and elluvial gold deposits in the study areas, determine the concentrates of alluvial and elluvial gold deposits in the study areas, compare the concentrates of alluvial and elluvial gold deposits in the study areas and determine the level of profitability in the study areas. The concentration of alluvial gold deposits was carried out using FAS – 121 Au Fire Assay, 50 g Fusion, AAS Trace Level analytical method while that of the elluvial gold deposits was carried out using FAS – 425 Au Fire Assay, 50 g Fusion, Gravimetric analytical method. The cost of production for alluvial gold deposits in Osun state were computed to be N30,000.00, N38,000.00 and N27,000.00 at Isereyun, Samuaye and Okere Oloja Villages respectively while that of elluvial gold deposits in Niger state were computed to be N125,000.00, N98,000.00 and N95,000 at Tutugo, Paiko and Bosso Villages respectively. The comparison of gold concentration in the two states shows that the elluvial gold deposits in Niger state has higher concentrates than the alluvial gold deposits in Osun state which could be due to the fact that elluvial deposits are mostly host rock for gold deposits. The level of profitability in alluvial gold deposits in Osun state ranges from 300% and 400% after the cost of production while that of elluvial gold deposits in Niger state ranges 300%, 400% and 500% after the cost of production. With the level of profitability of the alluvial and elluvial deposits, it can be observed that the profitability for all locations were close but there were differences in the cost of production.